This preview has intentionally blurred sections. Sign up to view the full version.View Full Document
Unformatted text preview: Page 1 of 25 Question Paper Financial Statement Analysis (CFA560): January 2009 ï‚· Answer all 70 questions. ï‚· Marks are indicated against each question. Total Marks : 100 1. SFAC 6 issued by Financial Accounting Standards Board (FASB) deals with (a) Objectives of financial reporting by business enterprises (b) Qualitative characteristics of accounting information (c) Elements of financial statements (d) Recognition and measurement in financial statements of enterprises (e) Using cash flow information and present value in accounting measurements. (1 mark) <Answer> 2. Decrease in net assets from peripheral transactions of an entity and from all other transactions and other events and circumstances affecting the entity except those that result from expenses or distribution to owners is known as (a) Assets (b) Liabilities (c) Revenues (d) Losses (e) Expenses. (1 mark) <Answer> 3. Liabilities that are incurred and which are known or estimated and payable at future dates are generally reported at their (a) Net settlement values (b) Gross realizable values (c) Book values (d) Current market values (e) Present values. (1 mark) <Answer> 4. Which of the following statements is false ? (a) Going concern concept assumes that business will be carried on for a definite period (b) The actual receipts or payments are not taken as the base under the accrual system (c) The revenues/expenses are recognized if they belong to the relevant accounting period, irrespective of whether cash or cash equivalent is received/paid or not (d) Inventories are valued at lower of cost or market value in recognition of conservatism concept (e) The financial statements provide information of not only the amount of cash payments or receipts during the reporting period, but also the cash payable or receivable in the reporting period. (1 mark) <Answer> 5. Which of the following concepts states that the performance can be measured only if revenues and related costs are accounted for during the same time period? (a) Going concern concept (b) Accrual concept (c) Consistency concept (d) Matching concept (e) Realization concept. (1 mark) <Answer> 6. Which of the following statements is false with reference to statement of comprehensive income? (a) It arises as a result of exchange transactions between the entity and its owners (b) It arises as a result of professional services (c) It arises as a result of lending and insurance activities (d) It arises as a result of environmental activities (e) It arises as a result of price changes. (1 mark) <Answer> Page 2 of 25 7. Significant worldwide accounting diversities are observed in the following areas except in (a) Inventory valuation (b) Accounting for lease (c) Accounting for research and development costs (d) Accounting for joint ventures (e) Treatment of ordinary items. (1 mark) <Answer> 8....
View Full Document
This note was uploaded on 07/20/2010 for the course ICFAI CFA taught by Professor Cfa during the Fall '09 term at Indian School of Business.
- Fall '09